Rockspring Property Investment Managers (“Rockspring”), on behalf of a separate account client, announced that it has completed the acquisition of 154/162 Tottenham Court Road and 33/37 University Street for £19.7million (approx. €24 mln), reflecting an initial yield of 5.5%.
154/162 Tottenham Court Road and 33/37 University Street is located in central London, in an area currently undergoing significant investment and repositioning through the Crossrail project. The asset comprises 34,000 ft² (3,158 m²) of predominantly retail space, let to a range of high quality tenants including Bo Concept and HSBC, and provides a secure income stream with a weighted average unexpired lease term in excess of 16.5 years.
The property is in close proximity to several public transport links, including Warren Street, Euston and Tottenham Court Road underground stations. Tottenham Court Road station is currently undergoing a £1billion (approx. €1.2 mln) transformation through the Crossrail project and will be one of the main Crossrail stations in London. The project is due to complete in 2018 and will link the entire Tottenham Court Road area to Heathrow Airport, the City of London and Canary Wharf.
Katie McDermott, Assistant Director, commented: “This is a unique opportunity to acquire a prime retail asset in a central London location that will benefit from huge infrastructure investment. The knock on effects of this investment should not be underestimated in terms of future footfall and critical mass. The asset ties in with Rockspring’s wider strategy to acquire low risk, secure income assets within growth locations.”
Kitchen La Frenais Morgan advised Rockspring on the acquisition and BCM advised the vendor.